Physician Mortgage Loans 2026: Complete Guide to Doctor Home Loans
0% down payment, no PMI, student loans excluded from DTI. The ultimate guide to physician mortgages for doctors, dentists, and medical professionals in 2026.
🩺 Physician Mortgage 2026 Quick Facts
- ✓Down Payment: 0% (up to $1M-$2M)
- ✓PMI: None required ever
- ✓Student Loans: Excluded or IBR only
- ✓Employment: Contract accepted
- ✓Credit Score: 700-720 minimum
- ✓Current Rates: 6.75-7.25%
- ✓Max Loan: $1M-$2M+ (varies)
- ✓Eligible: MD, DO, DDS, DMD, OD, DPM+
📋 Table of Contents
What is a Physician Mortgage Loan?
A physician mortgage loan (also called a doctor loan) is a specialized mortgage product designed for medical professionals. These loans recognize that doctors have unique financial situations: high student debt, delayed income during training, but excellent earning potential.
🎯 Key Benefits:
- • 0% down payment on loans up to $1M-$2M
- • No PMI regardless of down payment
- • Student loans excluded or reduced in DTI calculation
- • Employment contracts accepted (qualify on future income)
- • Higher loan limits than conventional mortgages
These loans exist because banks recognize that physicians are extremely low-risk borrowers despite their debt. Doctors have one of the lowest mortgage default rates of any profession—less than 1%—making them attractive customers.
Who Qualifies for Physician Mortgage Loans?
| Profession | Eligible? | Notes |
|---|---|---|
| Medical Doctor (MD) | ✅ Yes | All specialties |
| Doctor of Osteopathy (DO) | ✅ Yes | All specialties |
| Dentist (DMD/DDS) | ✅ Yes | General & specialists |
| Optometrist (OD) | ✅ Yes | Most lenders |
| Podiatrist (DPM) | ✅ Yes | Most lenders |
| Pharmacist (PharmD) | ⚠️ Some | Select lenders only |
| Veterinarian (DVM) | ⚠️ Some | Select lenders only |
| Nurse Practitioner (NP) | ⚠️ Some | Limited options |
| Physician Assistant (PA) | ⚠️ Some | Limited options |
| CRNA | ⚠️ Some | Limited options |
💡 Timing Matters:
Most lenders require you to be within 10 years of completing residency/fellowship. Some extend eligibility to attendings at any career stage. Residents and fellows with signed employment contracts are eligible.
Physician vs Conventional Loan Comparison
| Feature | Physician Loan | Conventional |
|---|---|---|
| Down Payment | 0-5% | 3-20% |
| PMI Required | No PMI ever | Yes (under 20%) |
| Student Loan DTI | Excluded or reduced | Full payment counted |
| Employment Letter | Accepted (future income) | Must be employed |
| Max Loan Amount | $1M-$2M+ | $806,500 (conforming) |
| Interest Rate | 6.75-7.25% | 6.50-7.00% (20% down) |
| Credit Score Min | 700-720 | 620 |
| Closing Timeline | 30-45 days | 30-45 days |
How Physician Loans Treat Student Debt
This is the biggest advantage of physician loans. With $300K-$500K in medical school debt, conventional lenders would count $3,000-$5,000/month toward your DTI, making homeownership nearly impossible. Physician lenders handle this differently:
IBR/PAYE Payment
Use actual income-driven payment amount
$400K loans → $0-500/month IBR = lower DTI
Excluded Entirely
Student loans not counted in DTI
$400K loans → $0 counted = maximum buying power
1% of Balance
Standard conventional calculation
$400K loans → $4,000/month = severely limits buying
0.5% of Balance
Some physician loan programs
$400K loans → $2,000/month = moderate impact
See How Much You Can Afford
Get pre-approved with a physician loan specialist who understands your unique situation.
Get Pre-Approved →Real Savings Example: Physician vs Conventional
Scenario: Dr. Smith Buying a $600,000 Home
Conventional Loan (20% down)
- Down Payment: $120,000
- PMI: $0 (20% down)
- Cash Needed: $120,000
Physician Loan (0% down)
- Down Payment: $0
- PMI: $0 (never required)
- Cash Needed: ~$15,000 (closing costs only)
What If You Put 5% Down Conventional?
- • Down Payment: $30,000
- • PMI: ~$350/month × 60 months = $21,000
- • Total Extra Cost vs Physician Loan: $51,000
💰 Total Physician Loan Advantage
$141,000+
Down payment savings + PMI avoided over 5 years
Top Physician Mortgage Lenders 2026
| Lender | Max Loan | Down | Student Loans | Rate | Best For |
|---|---|---|---|---|---|
| Truist | $2M | 0% | IBR payment | 6.875% | High loan amounts |
| Bank of America | $1.5M | 0% | Excluded | 6.75% | Existing BoA clients |
| US Bank | $1M | 0% | IBR payment | 7.00% | Residents |
| Fifth Third | $1M | 0% | Excluded | 6.875% | Midwest buyers |
| Huntington | $1M | 0% | IBR payment | 7.00% | Ohio, Michigan |
| KeyBank | $850K | 0% | Excluded | 7.125% | Northeast buyers |
Compare Physician Loan Rates
Get quotes from multiple physician lenders to find the best rate.
Compare Physician Lenders →Pros and Cons of Physician Mortgages
✅ Pros
- ✓0% down payment option
- ✓No PMI ever
- ✓Student loans excluded from DTI
- ✓Employment contracts accepted
- ✓Higher loan limits ($1M-$2M+)
- ✓Keep cash for investments/emergencies
- ✓Buy during residency
❌ Cons
- ✗Slightly higher rates (+0.125-0.25%)
- ✗Higher credit score required (700+)
- ✗Limited lender options
- ✗May have geographic restrictions
- ✗100% financing = more interest paid
- ✗Risk of being "underwater" early
- ✗Not all professions qualify
Frequently Asked Questions
Ready to Buy Your Home, Doctor?
Compare physician mortgage rates and get pre-approved in minutes. 0% down, no PMI.
Meet Emily
Construction & Commercial Loans Expert
Emily Chen specializes in complex financing solutions for construction projects and commercial real estate investments. With 8 years of experience in construction-to-permanent loans and DSCR financing, she has funded over $200 million in construction and investment property projects. Her expertise in navigating construction loan complexities and commercial underwriting makes her invaluable for real estate investors and builders.
EXPERTISE:
KEY ACHIEVEMENT:
Funded $200M+ in construction projects